05 May 2017
Chicago
Reporter: Drew Nicol

OCC and EquiLend partner for CCP project


OCC and EquiLend are launching a joint central counterparty (CCP) clearing system for the securities finance marketplace.

EquiLend Clearing Services (ECS) has developed a middle-office platform that supports OCC’s market loan programme by processing post-trade functions, including mark-to-market, returns, recalls and other trade lifecycle events.

The platform will also interact with OCC’s proprietary system to facilitate settlements.

EquiLend has also developed the ECS Gateway, which offers straight-through processing between its trading and post-trade services to the ECS Middle Office.

OCC will use the ECS Gateway to facilitate all matched trades and lifecycle events for processing in the market loan programme on behalf of ECS and other loan markets.

The partnership has already completed bilaterally agreed disclosed trades via the new system.

In a joint statement on the partnership, OCC and EquiLend explained that clients that wish to leverage the full straight-through processing capabilities can link their proprietary systems to ECS.

By using the service, clients will have the ability to submit bilaterally agreed trades to ECS for matching. ECS will then submit the matched trades to OCC using the ECS Gateway and ECS Middle Office systems.

Brian Lamb, CEO of EquiLend, said: “Our strategic alliance with OCC on the market loan programme is a critical step toward bringing greater access to CCP clearing services to the securities finance market.”

“This collaboration between EquiLend and OCC allows us to jointly build upon OCC’s strong foundation in securities finance clearing. With the launch of the ECS Middle Office and ECS Gateway, securities finance market participants have clearing access while benefiting from the efficiencies they are used to with EquiLend.”

Chip Dempsey, chief commercial officer at OCC, added: “Our collaboration with EquiLend will enhance our clearing services for securities lending. EquiLend’s culture, technology and network make them an ideal partner as we work to strengthen the resiliency of the securities lending market and introduce innovations designed to expand access to and utilisation of centralised clearing.”

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